Oregon uses a graduated state income tax with four brackets in 2026, ranging from 4.75% to 9.9%. Oregon is notable for having no state sales tax — one of only five US states with no sales tax. Oregon's average annual salary is approximately $62,000. Oregon levies a statewide transit tax of 0.1% on wages to fund public transportation. Oregon's high income tax rates combined with no sales tax create a unique tax profile compared to neighboring states — high earners pay more in income tax but save on sales tax.
2025 federal + simplified state + FICA — updates as you type.
State: Oregon (pre-selected; change the dropdown for other states)
This model uses a simplified flat effective Oregon rate on federal taxable income — not full OR-40 bracket math. The 0.1% statewide transit tax and local payroll taxes are not included. Educational only.
Not applied in this simplified model (no credits). For illustration only.
State tax uses a flat effective rate on taxable income — not your actual state brackets. FICA: Social Security 6.2% on wages up to $176,100 and Medicare 1.45% on all wages shown.
SS $3,844.00 · Medicare $899.00
Federal 12.00% + state 8.75%
Estimated take-home
$47,743 / yr
$3,979 / month
Federal brackets (2025 · Single)
| Income (Single) | Rate | Notes |
|---|---|---|
| $0 – $18,400 | 4.75% | Lowest bracket |
| $18,401 – $46,200 | 6.75% | Middle bracket |
| $46,201 – $250,000 | 8.75% | Most workers fall here |
| Above $250,000 | 9.9% | Highest bracket |
| Component | Amount |
|---|---|
| First $18,400 at 4.75% | $874 |
| $18,401–$46,200 at 6.75% | $1,877 |
| $46,201–$70,000 at 8.75% | $2,083 |
| Total OR state tax | ~$4,834 |
| Effective state rate | ~6.91% |
Oregon is one of only five US states with no state sales tax (alongside Alaska, Delaware, Montana, and New Hampshire). This means Oregon residents pay no sales tax on any purchases — groceries, clothing, electronics, or vehicles. On a $50,000 car purchase, an Oregon buyer saves approximately $4,000–$5,000 compared to a Washington state buyer (6.5% sales tax) or California buyer (7.25%+). However, Oregon's high income tax rates partially offset this advantage for higher earners.
Oregon levies a statewide transit tax of 0.1% on all wages earned in Oregon. This is withheld from employee paychecks separately from income tax. On a $70,000 salary, the transit tax is $70/year. Some Oregon metro areas also levy additional local transit payroll taxes — the TriMet district (Portland area) and Lane Transit District (Eugene) have additional employer payroll taxes that may affect total compensation packages.
Oregon has four graduated income tax brackets in 2026: 4.75% on income up to $18,400, 6.75% on $18,401–$46,200, 8.75% on $46,201–$250,000, and 9.9% on income above $250,000. On $70,000 income, Oregon state tax is approximately $4,834 — an effective rate of about 6.91%.
No. Oregon has no state sales tax — one of only five US states without one. Oregon residents pay no sales tax on any purchases including groceries, clothing, electronics, or vehicles. This partially offsets Oregon's relatively high income tax rates for middle and lower-income earners.
Oregon charges graduated income tax up to 9.9% but has no sales tax. Washington has no income tax but charges 6.5%+ sales tax. For a $70,000 earner, Oregon state income tax is approximately $4,834 while Washington is $0 — but Washington residents pay sales tax on all purchases. High earners generally pay less in Washington; moderate earners may benefit from Oregon's no sales tax.
Oregon levies a 0.1% statewide transit tax on all wages earned in Oregon, withheld from employee paychecks. On $70,000 salary, this adds $70/year. Some areas like Portland (TriMet) have additional employer transit payroll taxes that may affect compensation.
Oregon taxes most retirement income including pension payments, IRA withdrawals, and 401k distributions at regular state income tax rates up to 9.9%. Oregon does offer a retirement income credit for lower-income seniors. Social Security benefits may be partially or fully exempt depending on income level.
Oregon state income tax returns are due April 15, 2026. Oregon uses Form OR-40 for individual returns. Extensions are available. Oregon also has estimated tax payment requirements for taxpayers expecting to owe more than $1,000.
Educational estimates only. Not IRS advice.